Forward Air Corporation (FWRD)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-816,969	167,351	193,191	105,859	52,767
Revenue	US$ in thousands	2,474,260	1,370,740	1,973,400	1,662,430	1,269,570
Net profit margin		-33.02%	12.21%	9.79%	6.37%	4.16%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-816,969K ÷ $2,474,260K
= -33.02%

The net profit margin of Forward Air Corporation has shown varying trends over the past five years. In December 2020, the net profit margin was recorded at 4.16%, indicating that for every dollar of revenue generated, the company earned $0.0416 in net profit.

Subsequently, there was a noticeable improvement in the net profit margin, reaching 6.37% by December 2021 and further increasing to 9.79% by December 2022. This upward trend suggests that the company was becoming more efficient in controlling costs and generating profits relative to its revenue.

In December 2023, the net profit margin continued to rise significantly to 12.21%, reflecting a strong performance in terms of profitability. However, there was a sudden decline in December 2024, with the net profit margin plummeting to -33.02%. This negative figure implies that the company incurred a net loss during that period, indicating potential financial challenges or one-time events affecting profitability.

Overall, the fluctuating net profit margins observed over the years indicate a mix of positive and negative financial performance trends for Forward Air Corporation, highlighting the importance of monitoring and analyzing financial ratios to assess the company's operational efficiency and profitability.